Managing and growing a business is not a walk in the park. And one of the major decisions that you need to make, as a business owner, is to outsource tasks or build your own in-house team.

Outsourcing has its own pros and cons, so is building an in-house team. And there is no one-size-fits-all answer since most businesses have unique needs and requirements.

If you are currently in the loop of whether to outsource or build your own team, here are some considerations that can help you make a wise business decision,

As one of the trusted and leading outsourcing companies in Clark, Philippines, we’ve had a fair share of clients who went to build their in-house team and who outsourced with us. So it is good to know which is which first.

 

What is In-House Hiring?

In-house hiring means building your own team of employees who will work directly for your business. These are individuals or professionals:

• who are usually based in your office or working remotely but under your full supervision;
• who is part of your company internal structure;
• who contributes to your company culture;
• who attends your regular meetings;
• who handle day-to-day responsibilities and operations

 

What is Outsourcing?

On the other hand, outsourcing means getting an external team or agency to handle specific tasks or processes in your business. It can be local or offshore, depending on your business needs. Some common tasks that are being outsourced by businesses are:

• customer support
• marketing
• accounting
• bookkeeping
• IT and digital
• HR and recruitment
• website / software development
• Ecommerce
• virtual assistance

 

Pros of having in-house Team

Most business owners prefer to grow their business with more people directly working with or for them. Thus, here are some advantages of getting your own team for your business.

Full control

One of the main reasons for hiring an in-house team for your business is that you get to manage how your team works. You can even set the schedule of work and most of all, you can directly oversee their performance.

Stronger team culture

Another good thing about having an in-house team is that you get to build your own company culture. Your team members are more involved in every aspect of the business. And most of them can easily develop deeper relationships with each other. You can also easily align your business values and vision with them.

Long-term investment

Another great reason to have an in-house team is the long-term investment that you are putting into your business. So if you are looking for a long-term project or task, it is better to have an in-house team that will stick with you for a long time.

 

Cons of hiring in-house

Every coin has two sides, so if hiring an in-house team has its pros, it also has its cons. And some of these cons are probably the reasons why most business owners prefer outsourcing than hiring a full-time in-house team.

Higher costs

Building an in-house team is expensive. You need to invest in hiring, training, and onboarding. You also need to allocate a budget for salaries, benefits, and taxes. There is also an overhead for equipment, systems, and office space, among others. So if you are planning to build an in-house team, you need to have the budget for it.

Longer hiring process

Since you are looking for a long-term plan in hiring in-house team members, hiring can be tough. Finding the right talent can take months and onboarding can take even longer.

Limited flexibility

It is hard to scale up or scale down when you have an in-house team. You have contracts and permanent roles that you need to consider. So make sure you are working on long-term projects when hiring an in-house team.

 

Pros of outsourcing

If you still think that in-house is not the way to go, here are the advantages of outsourcing that you can consider as part of growing your business.

Cost savings

One of the major reasons why a lot of business owners consider outsourcing is the amount they save. By outsourcing, you don’t need to think about the money you will be spending for recruiting, training, onboarding, or even the equipment, office space, or tools that you need to do. Find the right outsourcing partner, pay a fee (which is a portion of having an in-house team member), and let them do all the work. You save a lot of money and even time.

Faster onboarding

Business owners don’t have time for hiring, training, and onboarding. That is why outsourcing is the best decision if you want to save time from all these processes. Let your outsourcing partner do the work for you while you focus on the more important part of your business.

Access to global skills

Another great thing about outsourcing is that you have access to global talents. You can tap professionals around the world who have niche skills that can help you grow your business.

Scalability

As mentioned it is hard to scale up and down with an in-house team. But with outsourcing, you have the flexibility to downsize or hire more depending on your needs. And you don’t have to worry about that. Just tell your outsourcing partner about your needs and requirements and they will handle the rest.

More time to grow your business

As mentioned, having an outsourcing partner gives you more time to focus on growing your business. Without thinking of recruiting, training, and onboarding, you have more time to focus on your core business processes. And since you can outsource some of your time-consuming tasks, you and your in-house team can focus on what you do best – growing your business.

 

 

Cons of Outsourcing

Whilst outsourcing is really a great business decision, there are other factors why it can be a disadvantage to some businesses. And here are some of them:

Less direct control

Since most outsourced teams are offshore or are from an agency, you need to trust your outsourcing partner to manage their day-to-day operations. So if you are a business owner who needs a more direct approach with your team, outsourcing may not be for you.

Communication challenges

A common challenge of outsourcing are different time zones and language barriers. This can cause occasional delays or misunderstandings within your team.

Risk of poor quality

Not all outsourcing companies are created equal. So you need to find the best one that you can trust when it comes to quality and consistency of work.

 

Key Factors to consider if you think Outsourcing is for your business

Still confused on what to do? If you still don’t know if hiring in-house is for you or if you want to try outsourcing, here are some guide questions to ask yourself before making a decision:

What is your budget?

As mentioned, hiring full-time in-house employees can be expensive. With this, you need to have a budget for it. On the other hand, if you are on a limited budget, outsourcing can be a good option as it can save you a lot as compared to hiring full-time in-house.

How fast do you need results?

Outsourcing often gets things moving faster thanks to skilled professionals and their global training. On the other hand, if you have time to hire, train, and onboard professionals, in-house can be a good option too.

Need specific skills or expertise?

Do you need to expand your business by hiring experts such as (IT, SEO, or admin support) these skills can be outsourced easily. Hiring in-house may mean training and onboarding them again just to fulfill certain expertise.

Do you need to be flexible?

Are you working on a seasonal project? If yes, you may want to outsource people instead where you can downsize easily if the project is done. Unlike with hiring in-house you need to have them for a long period of time even if the project is done.

Do you have the time to manage a team?

If not, let your outsourcing partner handle everything while you focus on your business. On the other hand, if you have time spare to train and oversee employees, then hiring in-house can be a good option for you.

 

Want both in-house and outsourcing?

Still don’t know what’s best for your business? Well, you can get both. You can try hybrid model where you hire an in-house team while outsourcing your specialised or repetitive tasks. This approach gives you the best of both worlds: a strong company culture combined with cost-efficiency and flexibility.

And to get started, we at SOS Global Smart Outsourcing can help you find the right professionals to do specialised tasks and projects.

Just contact us for a free consultation on our special offer on how we can help you with customer service, ecommerce, marketing and advertising, accounting and bookkeeping, software development, among others.

Book a free consultation with SOS Global Smart Outsourcing today and discover how we can help you save time, reduce costs, and grow smarter.